Bank of Canada sees early effects of recent interest rate cuts

The Bank of Canada is noticing the effects of its recent interest rate cuts. Last week, it reduced the key benchmark rate by 50 basis points to 3.75%, marking its first significant cut in over four years. Governor Tiff Macklem reported that inflation has dropped to 1.6% in September, below the target of 2%. The bank has cut rates four times since June after previously raising them to combat high inflation. Macklem indicated that while some impacts are anecdotal, more data will emerge in the coming months. He stated that further rate cuts could occur if the economy aligns with forecasts.